FIRST National Bank announced on Monday it will join SA Home Loans in securitising mortgages, Business Day reports. The move will allow it to offer home-loans as low as 13,1%, well below the ruling home-loan base rate of 15,5%. Securitisation allows a parcel of home loans to be “sold” to a third party investor, such as pension funds or merchant banks, which would not usually lend to individuals, the newspaper reports. The investor receives a return on the investment from the bond repayment, at a rate determined by the risk attached to the parcel of home loans. The new arm will be known as FNB HomeLoans.